10 reasons why relying on Google Analytics for revenue is not a good strategy
Google relies on the accurate implementation of Enhanced Ecommerce for funnel and transaction data. With the right tagging plan, Google Tag Manager expertise, and developer support, key events in the customer journey can be captured along with the revenue data as well. Relying on GA data for user behaviour data is generally a good strategy, assuming a good implementation of GA is in place.
However, when marketers start to rely on the revenue numbers in GA, that’s when things start to get a little hairy.
Reasons not to rely on Google Analytics for Revenue :
|1||You don’t have Enhanced E-commerce setup||Revenue numbers are not getting captured|
|2||Analytics.js tag doesn’t fire on-page load?||Revenue doesn’t get captured in GAUnderreporting of revenue|
|3||Users call in or email support to cancel orders||Revenue doesn’t get captured in GAInflated revenue numbers in GA in comparison to actual revenue|
|4||Users return the orders||Revenue doesn’t get captured in GAInflated revenue numbers in GA in comparison to actual revenue|
|5||Fraudulent order detected after booking||Inflated revenue numbers in GA in comparison to actual revenue because the order was canceled in the E-commerce system|
|6||GA is not capturing data from certain browsers or devices||Underreporting of revenue|
|7||Users are using the incognito mode on their browsers or have turned cookies off||Underreporting of revenue|
|9||Orders failed to get recorded in the database||Inflated revenue numbers in GA|
|10||GA is not setup to captured discount and coupon application||Inflated revenue numbers in GA|
|11||Google cannot exclude revenues from sample or test orders||Inflated revenue numbers in GA|
These are not uncommon scenarios. In fact, these are extremely common. After having audited 100s of GA implementations and having done over 70 GA implementations, we have consistently noted that revenue numbers are about 85%-90% of the real revenue numbers. That is why we believe that revenue in GA should not be used for any serious discussions around marketing efficiency or business performance.
What is the Solution?
Most brands make the mistake of only using Google Analytics primarily because it is free. However, in order to get advanced features, you have to get Google Analytics 360 which will cost roughly $150,000 annually in licensing.
So, Halo has been made to solve all the above problems effectively. Halo with its intuitive user interface, automated data extracts, a world-class modeling engine, scheduled reports, notification delivery, and a robust visualization layer offers e-commerce businesses a turn-key solution that addresses most of your business needs.
Sign up for Halo now to get accurate revenue reporting that can be used by every stakeholder in the company.